Colombia an Emerging Economy???

jonas says on Jul 8, 2008, 11:19:

bump

Mi alma se la dejo al diablo

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gimmedub says on Jul 8, 2008, 11:28:

the problem is that the interest rates are stifling the economy through many ways -

1) high peso means less foreign investment
2) more regulation on foreign investments
3) business can't afford to hire employees b/c they gotta pay the bank
4) high taxes on everything means the gov't keeps everyone poor
etc etc...

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gringoloid says on Jul 8, 2008, 11:41:

I had lunch with a couple of americans living in Medellin this past weekend and between the two of them they owned 5 apartments. These are the gringo hotel variety. They say these places were fully rented in the past, but now.....totally empty. Strong peso is hurting.

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TobyBoy says on Jul 8, 2008, 11:50:

-Grimmedub, sorry but again, you could not be more wrong. Have you any idea how INUNDATED with foreign investment Colombia has become in recent years?

The strength of the Colombian Peso alone has made Uribe’s government have to make new laws whih prohibit speculation form interantional investors, making their investments have to stay for a minimum of two years in Colombia.

Did you know that Bogota has the MOST expensive real estate in all of Latin America? ..Heck, someone has to be paying of this rent & pricing! …and it sure ain’t the narco’s most of them have already set up shop in Mexico, Guatemala, Belize and Costa Rica.

Did you also know that the beautiful difference between the growth of the Colombian economy last year, compared to other emerging economies, was that it was even more propelled by Internal Economic Growth (whereas places like Chile are depending so much more on foreign investments for their continued growth)?

It is also DUE TO Colombia's superior handling of foreign investment, that Colombia has the only major economy in Latin American economy that NEVR had a collapsing currency devaluation and that has always paid its foreign debt commitments punctually.

If you think high taxes kee the country poor, than how do you explain the high standards of life of Luxengburg, Switzerland, France, Germany, and the nordic nations?

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TobyBoy says on Jul 8, 2008, 12:07:

-Oh by the way, we must all keep in mind that while the strong Peso hurst some business like hotels and exporters, it is a huge bonus for importers, but most importantly; it has more of a penchant of creating a stronger economy long term, as the nation is better capable of handling its foreign debts.

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sanandressi says on Jul 8, 2008, 12:48:

The NORDIC nations obey the law and pay those taxes. In Colombia, the light turns red and you stop for a minute then, if nobody is coming from the other direction, you go. When drinking a soda on a bus in Latin America, you just throw the bag and straw out the window when you are finished.

In Colombia, you gotta stop and figure how much of the economy is based on drug money that still gets back into the country?

Finally, when the rich live in areas where you have guards with shotguns and banks where you have a metal detector at the door and kids in the streets with no social programs and parents sending their kids into the FARC because there is nothing else then you get a third world country and a third world economy.

In Costa Rica, the people line up nicely for the bus. In Nicaragua, it is a mad scramble when the bus door opens. Which country is better?

It is what it is but the mentality of the population as a whole has a lot to do with it!

"This train will stop in Tucumcari"

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jonas says on Jul 8, 2008, 14:54:

The question was not how much the gringos suffer from a strong COP or why the COP is so strong.
My question was do you feel like you live in a country with a booming economy?
As I said before, I know more people that lived/earned better a couple years ago than they do now.
I know of several big Colombian corporations that are cutting back budgets and with that wages.
When visiting some of the booming (for example) Asian or eastern European countries you sort of feel that a country is doing great, businesses being created, people finding better jobs that allow them to start spending money on things they could not afford before etc. You "feel the boom"--but in Colombia I just cannot see any of this even though according to the numbers it has one of the fastest growing economies in the world.
Do you feel like you are living in a country with a booming economy?

Mi alma se la dejo al diablo

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gimmedub says on Jul 8, 2008, 15:06:

toby - what average colombian do you know are capable of purchasing this expensive real estate in Colombia? I guess with all the new access to credit they can do so... but credit is just damned expensive... 11% interest rates - that's the only reason that the peso is so strong which stems foreign investments (cause we all know multi-nationals don't want to pay more for 3rd world labour) and also restricts local entrepreneurship because high interest rates stifles innovation.

I'd love to see the interest rates drop to 6%, have more business start, and see the peso appreciate naturally vs. such a fake appreciation. Bottom line if you got into the Colombian market a few years back you're best to cash out and enjoy the spoils... when the crash happens in Colombia (very soon) it's going to be VERY HARSH! The Colombian gov't can not control global inflation through high interest rates...

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TobyBoy says on Jul 8, 2008, 15:25:

Gimmedub, I actually do know many Colombians buying the expensive real estate in Bogota nad Cartagena, along with the foreigners.
In case you have noticed, teh Colombian economy is doing rather well, outpacing virtually every nation on the planet as it hovers in the 6 to 7%, again this year.

The high interst rates are very prudent, UNLIKE what happened in the US with its greedy-piggy-quick money mortgae schemes that have left more holes in the US than Colombia's desplasados.

In any case, I am certain that the US economy will crash long before the Colombian one.

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TobyBoy says on Jul 8, 2008, 15:27:

I meant more homeless than deplasados above. -sorry, but it I type too dfast when in a hurry.

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gringoloid says on Jul 8, 2008, 16:00:

tobyboy............................asset bubble?

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Noelito40 says on Jul 8, 2008, 17:15:

I'm with Gimedub on this, I'm not blind to the various problems Col has but for me the best stimulus for the economy would be lower interest rates. The rates here are barriers to entry or expansion, for many businesses, and I'm baffled as to why the rate of home repossessions is not skyrocketing with the mortgage rates.

It is true that the Col goverment cannot control external global factors but they can influence the Colombian banks, if they had the will to...now there's the rub !!

Noelito

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Noelito40 says on Jul 8, 2008, 17:19:

And I might add that coming from Ireland I'm familar with the effect of low interest rates (so low in fact that money was virtually free!!) and it was ONE of the factors that led to our booming economy. Mind you, then the banks lost the run of themselves (and went unchecked by our central bank) and started handing out crazy 100% (and evn 110%) mortgages!!!! which inflated the housing market and gave oxygen to the bubble!

I hope if Colombia does ever want to reduce rates they would remember to keep the banks on a tight rein!

Noelito

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TobyBoy says on Jul 8, 2008, 17:36:

Neolito, I actually agree that lower rates at this point, would probably help. I was just poining out, that up utnil this point in Colombian financial history, the high rates, as nasty as they are have had a reason. Ciao.

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gimmedub says on Jul 10, 2008, 11:36:

interesting article

http://colombiareports.com/2008/07/10/colombia-worries-about-the-econo...

wonder what's going to happen when that bubble bursts??? peso back at 2200?

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nbenjamin says on Jul 10, 2008, 22:06:

I just had to post noticing that toby again, makes a complete a.... of himself.

"In case you have noticed, teh Colombian economy is doing rather well, outpacing virtually every nation on the planet as it hovers in the 6 to 7%, again this year."

No, no, no although it is tempting I am not going to point out that I have seen 7 year olds type with more clarity - I am here to poiny out how wrong he is:

Although Colombia is fast growing economy, it is not "outpacing" (sic) nearly every country on earth - Here are four countries IN LATIN AMERICA ALONE that outpaced Colombia:

Argentina, Venezuela, Peru, Uruguay - Here is a list of the entire world:

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(real)_growth_rate

You may notice something funny - Colombia is not "outpacing" nearly every country on earth. It is not even in the top 10. Hey TOBESTER - try talking out of your mouth rather than you ASS. Thanks.


Gimmebud - solid article. Although I should make clear I am routing for colombia - just love pointing out how much of a monkey Tobester is.

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elmodefoque says on Jul 11, 2008, 05:50:

yeah, but we sell over 3 million fokin bananas a year.
can you beat that?

I'll get there, when I get there!

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elmodefoque says on Jul 11, 2008, 05:53:

do you know how much a banana goes for in the supermaket, 25 fokin cents
let's say we get 3 cents for every banana, now multiply that by 3 million , that's a lotta fokin pesos

I'll get there, when I get there!

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elmodefoque says on Jul 11, 2008, 05:56:

ok, minus what they have to pay the paracos and farc

I'll get there, when I get there!

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elmodefoque says on Jul 11, 2008, 05:59:

morph, we're doing the colombian festival in queens on the 20th
lets see how many USA/colombianitas reject our ass. I'm going for my personal record

I'll get there, when I get there!

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